Correlation Between InTest and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both InTest and Axcelis Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining InTest and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between inTest and Axcelis Technologies, you can compare the effects of market volatilities on InTest and Axcelis Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in InTest with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of InTest and Axcelis Technologies.
Diversification Opportunities for InTest and Axcelis Technologies
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between InTest and Axcelis is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding inTest and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and InTest is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on inTest are associated (or correlated) with Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of InTest i.e., InTest and Axcelis Technologies go up and down completely randomly.
Pair Corralation between InTest and Axcelis Technologies
Given the investment horizon of 90 days inTest is expected to generate 2.03 times more return on investment than Axcelis Technologies. However, InTest is 2.03 times more volatile than Axcelis Technologies. It trades about 0.11 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.04 per unit of risk. If you would invest 859.00 in inTest on November 1, 2024 and sell it today you would earn a total of 63.00 from holding inTest or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
inTest vs. Axcelis Technologies
Performance |
| Timeline |
| inTest |
| Axcelis Technologies |
InTest and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InTest and Axcelis Technologies
The main advantage of trading using opposite InTest and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InTest position performs unexpectedly, Axcelis Technologies can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Axcelis Technologies will offset losses from the drop in Axcelis Technologies' long position.| InTest vs. Axcelis Technologies | InTest vs. Lam Research Corp | InTest vs. Photronics | InTest vs. indie Semiconductor |
| Axcelis Technologies vs. Diodes Incorporated | Axcelis Technologies vs. Daqo New Energy | Axcelis Technologies vs. Micron Technology | Axcelis Technologies vs. MagnaChip Semiconductor |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |